Why Atlantica Sustainable Infrastructure (AY) Stock Is Falling

Atlantica Sustainable Infrastructure PLC AY shares are trading lower by 5.2% to $22.20 during Tuesday’s session. The company announced it entered into a definitive agreement to be acquired by Energy Capital Partners.

The acquisition will be for $22 per share in cash. This represents an 18.9% premium over Atlantica's share price on April 22, 2024, and a 21.8% premium over the 30-day volume weighted average price as of that date, valuing the company at approximately $2.555 billion.

The acquisition, executed through a scheme of arrangement under the U.K. Companies Act 2006, has support from Atlantica's major shareholder Algonquin Power & Utilities Corp., which holds 42.2% of shares and has agreed to vote in favor of the scheme.

Atlantica’s Board of Directors, after a thorough strategic review, unanimously concluded that this transaction offers the best value for shareholders. CEO Santiago Seage and ECP's Partner Andrew Gilbert expressed optimism about future growth under private ownership.

The transaction requires approval from shareholders, the High Court of Justice of England and Wales and various regulatory bodies, with completion expected by late 2024 or early 2025.

Post-transaction, Atlantica will become privately held and delisted from public markets, continuing its current quarterly dividend payments until closing. Detailed information is available in the Form 6-K filed by the company.

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According to data from Benzinga Pro, AY has a 52-week high of $25.22 and a 52-week low of $16.35.